Analysis of Ethical Theories

706 Words Feb 7th, 2018 3 Pages
These theories are the utilitarianism and deontological ethics theories. A solution to the dilemma that the industrial firm faces can be got through either of the two theories.
On the basis of utilitarianism theory, with no accounting rules in existence the industrial firm should not include the costly liability of cleaning up the hazardous waste pool that has accumulated over the past few years in its balance sheet. This is because under this theory there is no moral act such as not including the cost in the balance sheet is intrinsically wrong or right. However, the wrongness or rightness of any act that the firm takes part in is purely a matter of the overall gain that is realized as a consequence of doing the particular act or even following certain rules (Moreland, 2009). This theory implies that morality is a product of a good that is not moral which is realized from moral actions and therefore a particular moral action I just instrumental as opposed to being intrinsic. Therefore morality is a means to get to a particular end and it is not an end itself. This theory therefore maximizes the gains that can be got from a particular action and at the same time minimize the suffering that can be got from the situation.
By not including the cost on the balance sheet the company will be overvalued. This overvaluation of the company…
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